What is Authority?

Authority is the power associated with a particular job, enabling a person to carry out his responsibilities. Depending on the situation, authority may give a person the right to commit resources on behalf of an organization, as well as to give orders to subordinates. Authority is accompanied by responsibility, where a person is held responsible for the outcome of his or her actions. It is an essential requirement for delegating work within a business.

What is Authority as Agency?

Authority as agency is the power given to someone to act on behalf of another party. In effect, this is the power that a principal delegates to an agent. If a party takes action on behalf of another party without the associated level of authority, then the action taken can be voided by the principal.